Nasdaq enters correction as AI stocks tumble after Democrats' midterm gains
Briefing by News4U · First published
The Nasdaq Composite fell 5.5% on Thursday, entering correction territory and erasing more than $2tn in value, its worst day since April 2025, after Democrats swept the House and Senate in Tuesday's midterm elections. Chip stocks led the decline, with Nvidia down 9.2%, SanDisk 22%, Western Digital 17%, and the broader semiconductor index off 7.1%. Tesla dropped 9.5% and SpaceX 6.7%. The S&P 500 fell 4.3% and the Dow Jones lost 3.4%. Analysts cited expectations that Democratic governors and local ballots will curb data-center construction, raising doubts about the pace of AI infrastructure spending. [1] [2] [3]
Sources
- Stocks Erase Post-Midterm Elections Rally, Dragged Down by Tech
NY Times · · Summary only
- Steep losses in semiconductors, Tesla, Space X
RTÉ Business · · Full text
- Nasdaq sees worst day in 18 months as investors bet on AI slowdown after Democrats’ election triumph
The Guardian Business · · Full text